If you're a real estate broker/attorney and have thoughts/experience in this area, I welcome your opinion. I showed a client a property that was listed on the MLS. It expired. My client now wants to make an offer on this property. I contacted the owners to ensure that they still want to sell, and they do. The listing brokerage has an active commission protection clause in the listing agreement, which guarantees the listing brokerage a commission. How would you proceed in making an offer on this property and ensure that the cooperating brokerage gets paid?
@Ryan Lamanna I am no longer an agent nor an I a lawyer. If I was an agent and believed a commission was due I would talk to the previous listing broker to confirm they are due a commission. Then I would alert them to the sale and let them know who the title company is. A good title company is not going to settle the property without paying the commission if they know a commission is due.
Most listing agents will have a clause to protect them in these situations, but only for a limited amount of time.
If a buyer views the home while it is listed and then makes an offer within XX days after expiration of the listing, the original listing agent is still owed the commission. Why? Because they were the ones listing it when the buyer found the property.
My contracts usually have a 90-day period, meaning buyers can't cut me out until after the listing has expired for 90 days.
Thank you, but how does the cooperating/procuring broker ensure that he/she gets paid if the listing agreement protects only the listing broker?